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$532M IOS Investment Underscores Hot Market For Rising Industrial Niche

A $532M investment in IOS sites shows the increased interest in logistics real estate.

Realterm, a global investment manager focused on transportation and based in Annapolis, Maryland, announced a $532M raise to recapitalize a national industrial outdoor storage portfolio. The move values the 61 assets at a collective $1.2B and highlights the rising interest in niche trucking-related real estate

“It’s becoming, in our mind, an institutional asset class more accepted by the day,” Realterm Managing Director and Senior Fund Manager Steve Panos told Bisnow. “We and other investors continue to see durable demand tailwinds long-term for this sector.”

A mix of cross-dock truck terminals, drayage yards and other transportation-related secure storage sites, the national portfolio contains sites in Los Angeles and the Inland Empire, New York and Northern New Jersey, Atlanta, Chicago and Denver.

“This is a large portfolio that’s impossible to replicate, providing a durable income stream that will outperform the broader sector,” Panos said. “The supply chain is getting more complicated, which benefits this sector.”

Realterm, which manages $11B in assets, has found “incredible” demand from institutional investors seeking to invest in the IOS sector, said Peter Lesburg, managing director and global head of capital markets for Realterm.

Panos didn't provide additional information about the investors in the transaction.